Bitcoin's volatility is increasingly drawing high-frequency trading (HFT) strategies. Its price swings, often exceeding 5% daily, create arbitrage and momentum opportunities that HFT thrives on. Advanced algorithms exploit microsecond-level price discrepancies across exchanges, capitalizing on Bitcoin’s fragmented liquidity. Data from CryptoCompare shows Bitcoin’s 30-day volatility index hit 60% in Q1 2025, far above traditional assets like stocks (15-20%). This volatility, paired with 24/7 trading and low transaction costs, makes Bitcoin a prime target for HFT firms. Institutional adoption, with players like BlackRock entering via ETFs, further boosts liquidity, enabling faster order execution critical for HFT. However, regulatory scrutiny and exchange outages pose risks to these strategies. Still, as Bitcoin’s market matures, HFT activity is likely to grow, reshaping its trading landscape.